Trading update and 1H profit guidance

KATHMANDU HOLDINGS LIMITED ASX/ NZX/ MEDIA ANNOUNCEMENT 7 FEBRUARY 2017 TRADING UPDATE AND 1H PROFIT GUIDANCE FOR THE HALF YEAR ENDING 31 JANUARY 2017 Kathmandu Holdings Limited (ASX and NZX Code: KMD) advises that Group Net Profit after Tax ("NPAT") for 1H FY2017 will be approximately $9.9m (1H FY2016 $9.4m). Total sales for 1H FY2017 will be approximately $196.3 million compared to $196.0 million for the comparative prior period, an increase of 0.1%, +3.0% at constant exchange rates. Same store sales growth for the 26 weeks ending 29 January 2017 was 3.4% on a constant currency basis. Total Sales Total Sales Growth Same Store Sales Growth Local currency $m Local currency NZD Local currency NZD Australia 121.0 6.0% 1.8% 5.0% 0.8% New Zealand 68.8 0.9% 0.9% 1.2% 1.2% United Kingdom 0.7 (57.4%) (68.4%) (26.5%) (45.4%) Total (NZD) 196.3 3.0% 0.1% 3.4% 0.6% Note: Same store sales are for the 26 weeks ending 29 January 2017 Kathmandu's Chief Executive Officer Xavier Simonet said "Despite gross margin pressure in the first half from foreign currency, we were able to grow our earnings through healthy same store sales growth in our largest market, rigorous cost control and working capital efficiency." Kathmandu will release the full result for the half year on Tuesday 21 March 2017. ENDS For further information please call: Reuben Casey, CFO, +64 272727573 End CA:00296425 For:KMD Type:FORECAST Time:2017-02-07 10:24:43